The government on Friday decided to increase the prince of all petroleum products by nearly Rs26 to share the impact of rising international prices with the consumers.
The price of petrol has been raised to Rs25.58 making it Rs100.10 per liter from the existing Rs74.52 which makes it an increase of 25.6 percent according to the Finance Division press release.
The price of high-speed diesel or HSD also increases to Rs101.46 per from Rs80.15 which makes it an increase of RS21.31.
The price is kerosene oil has increase to Rs59.06 which makes with the increase to Rs23.50 from Rs35.56.
The cost of light diesel oil also changes by Rs17.84 making it to Rs55.98 from 38.14.
The decision to changes the prices of petroleum products was taken because of the rising oil prices in the global market after a brief statement was issued by the Finance Division.
The new prices will be in effect from 26 of June.
The announcement of the increase in fuel prices came unexpectedly as there were changes in prices from last month which were to be not changed until June 30.
The new prices were commonly announced on the last day of the month and came into effect after 12 am from the upcoming month. This chain was broken as new prices were announced today and were put into effect the same day.
Last month the price of all petroleum products had decreased except high-speed diesel due to a reduction in the international market prices.
With the increase in the costs of petroleum products, they have also increased general sales tax or GST on all petroleum products to 17 percent across all boards to generate more revenue. Until January last year, the government was charging 0.5 percent GST on light diesel oil, 2 percent on kerosene, 8 percent on petrol, and 13 percent on High-speed diesel.
Besides the increase of 17 percent GST, the government has also quadrupled the rate of petrol duty on HSD and petrol to Rs30 per liter the maximum limit from Rs8 per liter January last year.
Over the last month, the government has been increasing the petroleum duty rate to compensate in revenue for the shortage faced by FBR. The duty remains in the federal bank, unlike the GST which goes to the divisible pool taxes and makes about 57 percent share which is shared among provinces.
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